LIFE CHANGES FOR THE BETTER HERE NOVOSIBIRSK REGION ENHANCE CAPABILITIES. EXPAND THE BOUNDARIES.

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1 LIFE CHANGES FOR THE BETTER HERE NOVOSIBIRSK REGION ENHANCE CAPABILITIES. EXPAND THE BOUNDARIES.

2 Novosibirsk Region Administrative centre Novosibirsk (Russia's third largest city after Moscow and St. Petersburg) Distance to Moscow: 2,820 km Moscow Yakutsk Novosibirsk Area 177,800 square km Population 2.7 million people Employable population 1.64 million people 455 settlements (26 urban and 429 rural) The Novosibirsk Region borders: the Altai Territory in the south; Kazakhstan in the south-west; the Omsk Region in the west; the Tomsk Region in the north; the Kemerovo Region in the east 2

3 Climate of the Novosibirsk Region Temperature in Novosibirsk ranges from -18 C in January to +26 C in July. SPRING SUMMER AUTUMN WINTER 3

4 The Novosibirsk Region is the Geographical Centre of Eurasia 4 h 4 h 4 h 4 h Milan Moscow NOVOSIBIRSK Beijing Tokyo Federal highways M-51, M-52 and M- 53 Trans-Siberian Railway Mid-Siberian Railway Turkestan-Siberian Railway Tolmachevo International Airport modern and comfortable airport with an annual capacity of 5 million people Siberia's largest river port located on the Ob River 4

5 The Novosibirsk Region is among the fastest growing regions In the past 10 years: growth of gross regional product by 1.7 times growth of industrial production by 1.8 times 4-fold increase in the volume of investment in fixed assets 3-fold increase in real wages and real disposable income commissioning of more than 10 million square metres of housing commissioning of more than 25 million square metres of nonresidential real estate Population of Novosibirsk is more than 1.5 million people Novosibirsk entered the Guinness Book of Records as the fastest growing city a million residents within 70 years 5

6 Economic structure Agriculture and livestock farming 5,1% Other 2,5% Healthcare and medicine 4,9% Compulsory social insurance, public administration 6,1% The Region's economy is a balanced combination of various sectors of economy: Construction 5,5% Education 4,7% industry, agriculture, logistics, construction, etc. Transport and communications 15,8% Trade 12,4% Real estate, renting 20,3% Industrial production 22,3% *As of 2014

7 Structure of the industry in the Novosibirsk Region производство кожи, изделий из кожи и производство manufacture of leather and leather products обработка древесины wood working и производство and manufacture изделий of wood из products дерева текстильное и textile швейное and clothing производство industry целлюлозно-бумажное pulp and производство paper industry производство manufacture of машин machinery и оборудования and equipment химическое chemical производство industry производство manufacture резиновых of и rubber пластмассовых and plastic изделий products другие other добыча полезных mineral ископаемых extraction металлургическое производство metallurgical и производство industry производство электрооборудования manufacture of electrical электронного equipment и производство транспортных manufacture средств of vehicles и оборудования and equipment производство неметаллических manufacture of non-metallic минеральных mineral продуктов products производство generation and и distribution распределение of electric электроэнергии, power, gas, and газа water и производство пищевых food продуктов production 0,2% 0,6% 0,9% 2,1% 3,6% 3,8% 4,1% 5,2% 5,3% 7,6% 8,2% 8,4% 8,7% 17,3% 24,0% One of the most developed industrial regions in Siberia 10% of the total volume of industrial production of Siberia 7

8 Centre of a large consumer market In 2014: 12 million people within the radius of 600 square km the Region's retail trade turnover was 6.8 billion (17% of Siberia's turnover, which is the second highest indicator among all regions of Siberia) the Region's wholesale trade turnover is 9.1 billion (22% of Siberia's turnover, which is the highest indicator among all regions of Siberia) Advanced logistics allows to forward cargoes from west to east, to the countries of Middle and Central Asia and back

9 Developed human capital Leading positions in the field of science and technology for over 50 years Siberian Branch of the Russian Academy of Sciences 51 academic institutes Vector State Research Centre of Virology and Biotechnology More than 60 industry research, engineering and design institutes More than 100 large and 1,700 small businesses engaged in technical innovation activities Centre of attraction for human capital in the Siberian Federal District The concentration of scientific personnel in Novosibirsk is 2.2 times higher than the nationwide figure An only region in Siberia with a positive migratory gain The largest educational complex in the Asian part of Russia is developing in the territory of the Region 38 institutions of higher professional education 52 institutions of secondary vocational education 126 thousand students (as of 2015) The Region's educational institutions prepare field specialists for all branches of the diversified economy from IT companies to industrial productions, specialists for the whole of Siberia and the Far East

10 Liveability of the region The Novosibirsk Region boasts favourable living conditions, such as: a developed healthcare system; a developed system of general and vocational education; plenty of places for outdoor activities in the warmer months and in the winter time; 24 theatres and theatre studios, music studios and concert halls, various exhibitions and galleries; a high quality broadband access to the Internet; television and telephony; the regional banking system is represented by major Russian and international banks, including subsidiaries of Intesa Sanpaolo, Credit Europe Bank, Raiffeisen, Societe Generale, Home Credit Group, and UniCredit Bank; a developed system of hotels, the biggest of which are: Marriott, DoubleTree by Hilton, River Park Hotel, Azimut Hotel Siberia, Congress Hotel Novosibirsk, etc.; a developed network of express delivery services.

11 Foreign economic relations Import Machine building 45% The turnover of the international trade is more than US$ 3,1 billion Textiles and footwear 23% Food and agricultural products 9% Export Machine building 70% Chemicals 7.5% More than 123 countries are trading partners of the Novosibirsk Region Food and agricultural products 5% 2015

12 Priority areas for the Region's development Logistics Agricultural product processing Creation of decorating material productions Manufacture of machinery and equipment Industrial biotechnologies Creation of pharmaceuticals and biopharmaceuticals productions New materials

13 Priority areas for cooperation Machine building and instrumentation engineering Industrial biotechnologies Agriculture and food production Healthcare Infrastructure construction Energy efficiency Information Technology Light industry Industrial and interior design Culture and tourism Environmental protection 13

14 Tax exemptions and state support measures Investors and commodity producers enjoy tax exemptions and other state support measures and incentives in the Novosibirsk Region The government support may amount up to 25% of the total investment Loan support (state guarantees, subsidies for repayment of interest on loans and lease payments) Compensation of costs (for technology upgrade, research and development, preparation of business plans, patents, and crop insurance) Benefits and incentives (regarding taxes and leasing) In rural areas up to 50% of total investment Provision of technological infrastructure (industrial parks, business incubators, technology support centres) Infrastructural development of investment areas (industrial parks) Information support (consulting centres, internet portals, congress activity)

15 Key park infrastructure facilities Industrial Logistics Park The largest industrial park in eastern Russia Academpark Russia's largest industrial park 15 residents Total cost of projects million Biotechnopark Science and technology park in the area of biotechnology and biopharmaceutics 351 residents Residents' annual revenues 298 million (as of 2015) Medical Technology Park Site for the development and validation of innovative technologies, and their introduction into practical healthcare 5 residents Residents' annual revenues thousand (as of 2013) 14 residents Residents' annual revenues 9.1 million (as of 2013)

16 Examples of foreign investments in the Novosibirsk Region Arneg (Italian Holding) Production of commercial refrigeration equipment in the Industrial Logistics Park of the Novosibirsk Region. Total amount of investment 11.3 million Start of production in 2016 Tax exemptions for over 1.1 million until 2019 Hotel of Domina Hotel Group Network Total area 1,517 square metres Rooms 217 Hotel class 4* Total amount of investment 29.4 million The hotel was opened in February 2016 EkoNiva-APK Holding (German investor) Milk production, livestock farming, livestock breeding, seed and crop production Livestock 12,000 heads Milk production 100 tonnes per day State support 1.3 million per year

17 Investment Promotion Agency of the Novosibirsk Region Assistance to investors in: +7 (383) searching for partners and arranging business contacts; gathering information related to business arrangement; obtaining the support of the local administration; selecting a site; info@air-nso.ru registering a legal entity; and obtaining approvals and permits.

18 THANK YOU! +7 (383) ENHANCE CAPABILITIES. EXPAND THE BOUNDARIES.

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